Cathedral Energy Services says profit and revenue down from year ago

CALGARY - Cathedral Energy Services Ltd. (TSX:CET) said Tuesday it earned $3.8 million in its latest quarter, down from $8.6 million a year ago, hit by a slowdown in the Canadian energy patch.

The oilfield services company said the profit amounted to 10 cents per share for the quarter ended Sept. 30 compared with a profit of 23 cents per share a year ago.

Revenue fell to $49.8 million, down from $63.4 million.

The company said revenue from its directional drilling division fell to $35.5 million from $47.9 million a year ago, while its production testing division saw revenue fall to $12.1 million, down from $15.6 million.

Resale and rental revenue totalled $2.2 million in the quarter compared with none a year ago.

In its outlook, Cathedral said the slower third quarter could be attributed a "spring breakup" that extended in July due to wet weather and a June decline in commodity prices that prompted producers to suspend or cut back capital spending.

"Despite recovering oil prices and, to a degree, natural gas prices, activity levels in the Canadian market have been significantly reduced from levels of 2011 Q3 and Q4," the company said.

"Cathedral is expecting Canadian activity levels to grow significantly in Q1 2013 over 2012 Q3 and Q4 levels as customers have replenished capital budgets. Cathedral has recently expanded its marketing teams in both Canada and U.S. and expects to see results of this to begin showing in 2013."

Shares in the company, which reported its results after the close of markets, were down 14 cents at $5.60 on the Toronto Stock Exchange.